Multi-family sales up 12 percent in Q3

Multi-family home sales ticked up in the third quarter of 2013, according to Ariel Property Advisors’ quarterly report on multi-family sales provided exclusively to The Real Deal.

The number of multi-family transactions in New York City increased 12 percent in the third quarter over the same period in 2012, and the dollar volume of those trades leapt 57 percent, boosted by the hefty $600 million sale of Westbrook’s multi-family portfolio. A total of 172 transactions, comprised of 329 buildings totaling $2.457 billion in gross consideration took place in the third quarter. That compares to 153 transactions comprised of 213 buildings totaling $1.561 billion in gross consideration in the same period one year prior.

The total in gross consideration was a 1 percent uptick in transaction volume, 26 percent in building volume and 18 percent in dollar volume from the second quarter of 2013, which saw 170 transactions comprised of 261 buildings totaling $2.074 billion in dollar volume.

“The third quarter report showed impressive year-over-year gains in volume and pricing,” Shimon Skhury, president of Ariel Property, said in a statement. “We believe this momentum will continue through the end of the year, though we do not expect the fourth quarter to be as active as the fourth quarter of 2012, which experienced a selling frenzy due to the anticipated capital gains hike. In addition, the recent decline in interest rates from their summer peak should help sustain building prices in the near term.”

Manhattan saw a 36 percent dollar volume increase compared to the third quarter of 2012 and a 41 percent from the second quarter of 2013, thanks largely to Westbrook’s $600 million portfolio sale to HFZ Capital Group. The 3,301 units sold as part of that package was more than 70 percent higher than the number of units changing hands compared to the previous quarter and the prior year.

Northern Manhattan’s dollar volume soared to $364.967 million in the third quarter — the second-highest compared to other areas covered by the report. Boosted by a number of international sales, there were 32 transactions including 62 buildings sold.

Brooklyn multi-family sales dipped on a quarterly basis but saw a 14 percent lift year-over-year, while the number of buildings that traded increased 21 percent and the dollar volume rose by 67 percent versus the third quarter of 2012. There were 11 sales above $10 million in the borough, including 202 8th Street in Gowanus for $37.75 million. — Julie Strickland